S&P Global Ratings Affirms Ecopetrol’s Stand-Alone Credit Profile and Revises Global Credit Rating

Standard & Poor’s Global Ratings (S&P) has revised Ecopetrol’s global credit rating from BB to BB- with a stable outlook, aligning with the adjustment to Colombia’s sovereign credit rating. Ecopetrol’s Stand-Alone Credit Profile (SACP) was affirmed at bb+. The rating revision is primarily influenced by Ecopetrol’s significant relevance to Colombia’s fiscal revenue, its status as a government-related entity, and its strategic role in the national energy sector. S&P highlighted that Ecopetrol’s rating is capped by Colombia’s sovereign rating due to these factors. The stable outlook reflects the outlook of the sovereign rating. The report also detailed Ecopetrol’s business operations, financial performance, and its contribution to Colombia’s economy, including dividend distributions and investments in energy transition. Potential rating actions were outlined based on various scenarios including changes in Colombia’s sovereign rating, Ecopetrol’s financial performance, production levels, and dividend policies.